Laws Of .com

Overstock Leads Charge against Spyware

Overstock.com, an online "closeout" retailer, has filed a complaint against SmartBargains Inc., a competitor online retailer, under Utah's new Spyware Control Act. Overstock alleges that SmartBargains is using spyware to display pop-up ads over Overstock's website. Spyware is secretly installed on a computer when its user downloads free software programs from the Internet. It is then used to collect personal information and deliver unwanted pop-up ads while the user is browsing the Internet. Overstock's president compares the effect of pop-up ads on web browsing to the effect of spam on email. Although Utah is the first state to pass anti-spyware legislation, other states are considering following suit.

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